How Mortgage Modification Affects Your Credit Score
Over the past five years, the number of foreclosed properties in the United States has continued to rise due to the current state of the economy. There have been 33,073 foreclosed properties – one in every 268 houses – in the state of Florida in 2011 alone. This number is the second highest for any state in the nation, putting thousands of people at risk of losing their homes. If you are facing high mortgage payments and are struggling to make your payments on time every month, you may feel like foreclosure is your only option.
Fortunately, you do not have to lose your home. Many homeowners are beginning to learn about mortgage modification and how it can help them through these difficult times. When people discuss the possibility of mortgage modification, many wonder if it will damage their credit score. If you or a loved one has questions about keeping your home and how mortgage modification affects your credit, contact a qualified Boca Raton foreclosure defense attorney at Eric N. Klein & Associates, P.A., by calling 561-353-2800.
Your Credit Score and Mortgage Modification
It is a common misconception that modifying your mortgage actually damages your credit score. This is not true. One of the most severe ways you can damage your credit score is missing mortgage payments. There is no certain method for determining how mortgage modification will affect your credit score. Typically modification does not damage your score unless you continue to miss payments afterward. The following are factors that will be taken into account:
- Your financial history and situation before and after modification, including timeliness of your payments
- Your credit score at the time of modification
- The details of the modification agreement
Contact Us
You should not have to live every day worrying about making your mortgage payment. At Eric N. Klein & Associates, P.A., our Boca Raton foreclosure defense attorneys can help you to identify solutions to your current state of distress. Contact us today by calling 561-353-2800.
